Last month, Union Cabinet raised the Dearness Allowance (DA) and Dearness Relief (DR) by 4 per cent for central government employees and pensioners.

Anurag Thakur, Union Minister of Information & Broadcasting announced on March 24, 2023 that with the recent 4 per cent hike, DA for central government employees and DR for pensioners will be increased to 42 per cent. This will be effective from 2 January 2023.

According to Thakur, this decision will help 69.76 lakh central government pensioners and about 47.58 lakh central government employees of the government.

Central government employees can calculate the increase in their salary according to their basic pay and grade after the DA hike.

Dearness Allowance Hike: Calculation at 42% DA

After the 4% Dearness Allowance hike, the total DA figure has risen to 42%.

If calculated in the maximum salary range, then the total annual dearness allowance on the basic salary of Rs 56,900 will be Rs 2,86,776.

Those falling in this pay grade will get Rs 2,276 more as DA, than the current rate.

Their monthly DA amount will rise to Rs 23,898 with this DA hike announcement.

Dearness Allowance arrear calculation: The employees will receive Rs 71,694 (Rs 23,898*3) including March month DA.